Engie returns to profit in 2017, raises 2018 dividend

Solairedirect solar farm in France. Source: Engie

March 9 (Renewables Now) - French clean energy group Engie SA (EPA:ENGI) on Thursday reported 2017 financial results that are in line with its objectives, including a return to profitability, and said that for 2018 it expects sustained organic growth.

The company, which operates renewable energy and natural gas-fired power plants, has turned to a net profit of EUR 1.4 billion (USD 1.7bn) from a loss of EUR 400 million a year back, because of lower impairments compared to 2016.

The table below gives more details about the company’s 2017 performance.

In EUR

2017

2016

y/y change (gross)

y/y change (organic)

Revenues

65bn

64.84bn

+0.3%

+1.7%

EBITDA

9.3bn

9.49bn

-1.8%

+5.3%

Net recurring income, Group share including E&P

2.66bn

2.48bn

+3.4%

N/A

Net profit (loss), Group share

1.42bn

(415m)

--

--

Cash flow from operations

8.31bn

9.58bn

-1.3bn

--

Net financial debt

22.5bn

24.8bn

-2.3bn

--

After going through a “vigorous” strategic repositioning, the company says it now has a less risky profile, with 89% of EBITDA being contracted or regulated, as well as a cleaner and more profitable portfolio of activities.

For 2018, Engie forecasts a net recurring income, Group share, excluding E&P and LNG, of between EUR 2.45 billion and EUR 2.65 billion. That is why the company has decided to announce a 7.1% higher dividend for fiscal year 2018, at EUR 0.75 per share.

The 2018 guidance is based on an indicative EBITDA range of EUR 9.3 billion-9.7 billion, the company noted.